Where to Buy Real Mortgage Notes Online (Safely and Legally)

Mortgage note investing is one of the most overlooked paths to passive income, but it’s quickly gaining popularity in 2025. As more people look to escape the hassles of tenants and property management, becoming a bank through note investing is finally entering the mainstream.

One of the most common questions we get is:

“Where can I buy mortgage notes online and know they’re legitimate?”

This guide will walk you through the top sources, what to look for, and how to get started safely and confidently.

What Is a Mortgage Note?

A mortgage note is the legal document that outlines the terms of a loan secured by real estate. When you buy that note, you essentially step into the shoes of the lender. You collect payments from the borrower, and the property serves as your collateral.

You're not buying the house; you’re buying the debt secured by the house.

1. Online Note Marketplaces

Some of the most beginner-friendly places to purchase notes are dedicated marketplaces like:

• Paperstac

• NotesDirect

• LoanMLS

• Revolve Capital

These platforms list performing and non-performing notes and usually offer clear documentation, due diligence access, and third-party escrow.

This is often the best place to start as a new investor because the process is guided and transparent.

2. Direct from Individual Sellers

Experienced investors and small funds frequently sell individual notes or small pools via:

• Real estate investor forums

• Facebook groups

• LinkedIn

• Webinars or masterminds

You can often negotiate better pricing or terms this way, but you’ll need to perform your own due diligence. Make sure you receive full documentation (loan agreement, payment history, recorded mortgage, etc.) before proceeding.

Want to learn how to evaluate notes like a pro?
Watch our 10-part video series for beginners and discover the full lifecycle of a mortgage note investment.

3. Institutional Sellers and Hedge Funds

Banks, hedge funds, and large institutions regularly offload non-performing and reperforming notes. While this path offers access to discounted deals and larger pools, it also requires more capital, deeper analysis, and negotiation experience.

For investors ready to scale, this is a natural next step, but not where most should begin.

4. Note Brokers and Deal Facilitators

Licensed or experienced note brokers can help match you with sellers, review documentation, and even support you during closing. They typically earn a commission or flat fee per deal.

Always vet your broker. Ask for references, previous deal samples, and confirmation of their compensation structure.

5. Auctions and Distressed Asset Sales

Some real estate auctions and asset liquidation sites may include mortgage notes, but these deals often come with little documentation and high risk. This path is best reserved for experienced investors who know how to work out loans or foreclosures.

What to Watch Out For

When buying notes online, keep an eye out for red flags such as:

• Missing or vague documentation

• No clear payment history

• Unrealistically high promised returns

• Notes that aren’t secured by a recorded lien

If something feels off, walk away.

How to Start Safely

The best way to begin is with a performing note from a reputable seller on a vetted platform. Stick to first-position notes secured by single-family homes in stable markets. Review every file and don’t skip due diligence.

Want a proven checklist and step-by-step system for getting started?
Check out our $1 note investing starter course. You’ll learn how to source deals, analyze them, and build monthly income—without the landlord headaches.

Ready for Mentorship?

Once you’ve learned the basics, our students often progress to working with private sellers and funds. If you’re looking to take that step and get hands-on support from seasoned investors, our Professional Mentorship Program is designed to guide you through your first live deal and beyond.

Final Thoughts

You don’t need insider access or six figures to start investing in mortgage notes. You just need the right education, a solid strategy, and trusted deal sources. Start small, follow a proven system, and scale up with confidence.

Learn the basics of mortgage note investing for just $1
No tenants. No toilets. Just real passive income secured by real estate.